Hanoi Construction Corporation – JSC (UPCoM: HAN) has recently released the materials for its upcoming 2024 Annual General Meeting of Shareholders, scheduled to be held on May 31st, 2024, in Hanoi.
For the upcoming year, HAN has set ambitious goals with a total revenue target of VND 2,278 billion and a pre-tax profit of over VND 66 billion, reflecting a 4% and 2% increase, respectively, compared to the previous year’s performance.
The majority of the revenue is expected to come from the construction segment, targeting VND 1,704 billion, a significant 58% increase from last year. On the other hand, the real estate business is not a key focus for HAN this year, with a more conservative target of VND 438 billion, representing a 59% decrease compared to 2023.
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HAN’s 2024 Production and Business Plan
Source: HAN
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To achieve these goals, HAN plans to focus on real estate investment in various projects totaling an estimated VND 250 billion. This includes the continued handover of the mixed-use buildings NO1-T6 and NO1-T7 to customers, as well as investment in projects NT1, NT2, TH1, TH2, and the development of office, commercial, and service spaces in CC3 and CC4. The company also aims to complete the adjustment of the 1/500 planning for the N01-NG, N02-NG, and CC5 land plots and continue seeking potential investment opportunities.
In the construction segment, the company intends to strengthen its marketing and bidding efforts for projects worth an estimated VND 4,000 billion. The focus will be on projects with state budget funding and transportation and energy infrastructure projects. Additionally, HAN will work to overcome challenges and accelerate the progress of the company’s key construction projects.
Impressive First-Quarter Profit Growth
HAN concluded the first quarter of 2024 with impressive results, recording a gross revenue of nearly VND 540 billion and a net profit of almost VND 2 billion. These figures represent a remarkable 3.2-fold and 9.2-fold increase, respectively, compared to the same period last year. In relation to the annual targets, the company has achieved 24% of the total revenue target and 8% of the pre-tax profit goal.
Net profit of HAN from Q1/2021 – Q1/2024
HAN attributed the increase in profit to the growth in revenue from the real estate business compared to the previous year. Additionally, the company implemented cost-saving measures and successfully reduced expenses.
As of March 31, 2024, HAN‘s total assets amounted to nearly VND 6,322 billion, a 7% decrease from the beginning of the year. Notably, cash and cash equivalents decreased by 74% to nearly VND 159 billion, while inventory stood at over VND 1,585 billion, a 2% decrease, mainly comprising production and business costs in progress.
On the liabilities side, the company had over VND 4,703 billion in payables, a 9% decrease from the previous period. Financial borrowings remained relatively stable at over VND 807 billion, accounting for 17% of total debt.
